CSN Mineração (CMIN3) will pay R$2.8 billion in dividends and JCPs – Money Times


A CSN Mineração (CMIN3) will pay R$2.3 billion in dividends midterms and R$465 million in interest on equityshows a document sent to the market this Tuesday (01).

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The payment per share in dividends will be R$0.43689118448 and in interest on equity R$0.08553869507.

Payments will be made by December 31, 2024, and the date must be defined by the company's management.

Shareholders who want to take advantage of the jackpot will have until October 3, 2024 to buy the paper. From October 4th, the share will be traded ex-earnings.

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CSN Mineração leads gains in September

I and CSN Mineração turned around and rose well, with a gain of R$6.6 billion in market value. All because China decided that it was time to stimulate the economy, with a package of measures, including stimulus in the real estate sector.

However, all this growth could be lost in the coming months. At least that is the view of the BB Investimentoswhich cut the recommendation from neutral to sell and target price of R$5.90.

“After reviewing our financial model, we observed that aCMIN3 shares are being traded at a premium of 36% over the historical EV/Ebitda multiple and continue to experience high volatility”, writes analyst Mary Silva.

To support its 'pessimism', BB lists five points:

  • strong fluctuation in the company's operational performance between quarters, which limits visibility into future results and contributes to increasing the volatility of CMIN3 quotes;
  • uncertainties regarding the scenario for iron ore in the short term. Despite the recent announcement of new stimulus by the Chinese government, BB believes that the profound weakening of the real estate market should continue to limit domestic demand for steel in China for the remainder of the year, which could once again weigh on iron ore prices;
  • expectation of maintenance of maritime freight at high levels, which reinforces BB's caution regarding the company's operational profitability for the remainder of the year, since the company is heavily exposed to spot freight;
  • delays in expansion projects, after successive schedule revisions, disbursements continue at a slow pace and may be postponed again, which reduces the attractiveness of the company's long-term investment thesis;
  • potential impacts of the additional reduction of shares in circulation on the liquidity of the paper due to a new buyback program;

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